As the market for online and hybrid agents evolves there will only be two to three major players left standing.
That’s the prediction from easyProperty boss Jon Cooke, who said he expects his firm to be one of them.
Cooke was expanding on comments he made at the NAEA Propertymark conference in London on Wednesday.
The easyProperty chief executive questioned whether some of his online competitors (who he did not name) could continue to afford the “astronomical” amounts of money they are spending to acquire new customers.
Commenting further to EYE yesterday, he said: “Property Industry Eye itself did a very good article saying £250m has been spent to gain 6% market share and the continuing growth of the online sector very much revolves around some of our competitors’ continuing marketing spend above the line, which creates a cost per acquisition which must challenge the future funding opportunities I would think.
“We are talking about existing players. I don’t think there will be any additional players coming in.
“Is it [their market share] going to end up being 6% or 10% or 20%?
“I think they very much depends on some deep pockets of one or two of our more mainstream competitors and I am not sure that they are going to continue to be able to draw down these funds but obviously that is my opinion.
“There will be two or three players as it washes out, and we will be one of them because we work with local estate agents.
“We have a very cost-effective licence that the agent buys for our technology and the brand and we support our licensees in a hyper-local strategy.”
He added that easyProperty’s own cost per acquisition was lower than its rivals, thanks to this “hyper-local” strategy, which he claimed sees 87% of leads coming in digitally and via the local, independent agents it works with.
At the conference, Cooke also asserted that a lower cost hybrid model reflected a change in consumers’ behaviour and the fact that they wanted to “transact on their own terms”.
He said: “What the change in the last few years has done is that it has empowered the consumer and there is more transparency about what is on offer.
“They are able to make a choice.
“At our price point for easyProperty you are pretty aware that you are going to have to do some of the work yourself – let’s be frank about it.
But responding to his comments, Martyn Baum, group residential manager of Arnold Keys in Norfolk, said: “I am not sure they do realise that.
“I have people come into my branches who are selling their property who don’t understand that there isn’t going to be any sales progression [with online agents] added into the service that they pay for.
“Unfortunately we end up stepping in to do that for them.”
* Separately, easyProperty is offering its service for free in Rugby, writes Marc Shoffman.
The offer started yesterday and will finish at the end of this month.
It includes easyProperty Rugby’s sales service, normally charged at £595, which includes Rightmove marketing, a For Sale board, professional photography, a viewing arrangement service, offer negotiation and sales progression.
Adam Day, head of operations at easyProperty, said: “This is all part of our hyper-local marketing strategy that is being delivered through our licensee network.
“All of our licensees have the flexibility to offer our sales service at a discount if they choose too.
“When traditional agents launch into a new area they will often offer their service for free to quickly establish themselves in that area – easyProperty Rugby is quite simply taking a similar approach offering our £595 sales service to vendors for free for the month of March.”
Comments (11)
It could end up being a two horse race, not three? The public will decide based on value for money, service, transparency and no need for multiple choice agents for getting no sale and no fees. This is the way it is moving. The likes of Emoov and YOPA are likely to be the winners. The others have history of serious suspicions of hiding the truth and surviving by charging regardless of success, the other two are pretty much clean in those arrears and in perfect position to challenge any company into third or out of the game. The move to no sale = no fee by on-liners is the game changer. The way that Emoov and YOPA have changed their marketing is superior to what it used to be, while the others are stuck in the mud (often getting their wrist slapped by the ASA) telling everyone they are the same. Customers are looking for something new, to make change and that is where Emoov and YOPA have taken the lead. Time will tell.
From an advertising point of view, i admire the way that Emoov and YOPA have pushed the benefits of their business, hopeing to attract vendors through offering good service. The other lot continue to slag off high street agents as that is how they choose to do things. I would never slate another estate agent on an appointment, as i am not that unprofessional
“From an advertising point” – maybe.
But lest you forget, that is the result of years of training to get The Quirkster to realise that any and every dollop of 5h!t he has tried to sling at the fan of Traditional Agency would always come straight back in his face.
Should have given it away for free nationwide and built up some goodwill amongst potential customers. Too little too late from the easy guys.
“* Separately, easyProperty is offering its service for free in Rugby, writes Marc Shoffman.”
Let’s hope it’s not a case of ‘wasted nothing’ for the homeowners, then.
It could end up costing them dearly…
…maybe Mr Day would like to debate that possibility – here on EYE?
Bring.
It.
On.
In my opinion Easyproperty might as well knock it on the head. They have no presence, this Fine & Country marriage seems to have fallen on deaf ears and they are up against some people with seriously deep pockets. I agree with A.I PB, Emoov and YOPA will probably be the ones left standing. Emoov for me have the greatest shot and being around in 20 years. YOPA will probably long long term issues with the No sale No fee product, and PB will have problems if they cant start to turn in a huge profit in the next 5 years or so.
A ‘High Street’ agent offering no fees as a start up will get you share and profile in the local area and because you’ve little stock and no running sales you can give the client a service level that will get sellers (even if you haven’t sold for them) raving about you to everyone they know in the town and even those they don’t.
If you offer minimal service with little client engagement and have no visible local connection (try to find Easy locations on their website) even if you do it for nothing people will say nothing.
Ps top marketing tip; if you are going to have a promotion, errr, promote it. Your website would be a good start Easy Rugby.
Of the current players the three will be – PB, emoov. Yopa. Ain’t gonna be easy (for any of them) – pun intended.
I agree witb Jon in that there will only be about 3 major players, however easyproperty will not be one of them!
If you can’t sell it at £595 and literally have to give it away, my advice would be to call it a day.
This is pure fantasy I am afraid.
Participants will drop it at the earliest opportunity or just won’t use it as they cannot make it pay.